If you're self-employed, most likely, you do not have taxes automatically withheld for Social Security and Medicare. Therefore, you're required to pay a self-employment tax to support these two programs. You may be subject this tax if you're a sole proprietor of a business, a professional who owns your own practice, or an independent contractor. Also, if you worked for a church or a qualified church organization, other than as a minister or member of a religious order, and received income, you're subject to the self-employment tax. You're allowed to deduct one-half of your self-employment tax in figuring your adjusted gross income. You can compute your self-employment tax using Schedule SE (S-E). For more information on self-employment tax, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.